Car retailer Vertu Motors today unveiled plans to raise £30 million to buy new dealerships in a rare bit of good news for the beleaguered industry.

Chief executive Robert Forrester - who set up Vertu in 2006 after leaving Reg Vardy when it was bought by Pendragon - said: "The current market conditions present us with an opportunity to scale up our business by acquiring good motor retail businesses at low valuations,"

Vertu, which has 45 dealerships trading under the Bristol Street Motors and Bristol Street Motor Nation brands, said it will sell nearly 105 million shares for 30p each to raise the money.

Forrester, who will buy £100,000 of shares in the placing, also reported profits of £70,000 for the 12 months to the end of February against £140,000 a year earlier.

He said that trading so far this year was ahead of company expectations, with profits up year-on-year.

"Whilst the market will remain challenging for the foreseeable future, the group is well positioned to take advantage of opportunities arising as we focus on building a sustainable, scalable business," Forrester said.